Nearby ethanol contracts continued lower Tuesday, following additional losses in the corn market. Although aggressive support was seen in the stock market through the trading session, moderate grain market pressure was the focus of ethanol traders.
Front-month contracts lost 2.9 cents per gallon each of the last two trading session. This has moved markets nearly 6 cents lower through the week, which could create additional technical weakness through the rest of the week.
Traders are still focusing on the potential of tight ethanol supplies, but the recent weakness in the corn market is stealing the attention of most ethanol traders at the moment, and is likely to be the focus of any market movements through the end of the week.
Rick Kment can be reached at email@example.com
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